A group of Democratic senators, led by Sen. Alex Padilla, has sent a letter to Treasury Secretary Janet Yellen urging for more flexibility in federal tax subsidies for the hydrogen industry. The current guidelines, supported by environmental advocates, impose strict criteria on eligible companies, requiring the use of new clean energy specifically produced in the same region as hydrogen projects. The senators argue that these stringent requirements could discourage investment and impede the development of a robust clean hydrogen industry essential for reducing carbon emissions. They propose alternative approaches, such as permitting owners of minimally emitting energy sources to supply power to hydrogen producers and adopting a 'commence-construction' standard akin to the solar tax credit. The senators express concerns that the existing guidance could jeopardize significant investments in clean hydrogen projects, making some forms of hydrogen economically unviable and hindering efforts to decarbonize challenging sectors of the economy. The letter emphasizes the necessity of revising the guidelines to ensure the establishment of a sustainable domestic clean hydrogen industry capable of making substantial contributions to lowering economy-wide carbon emissions.